More than half of Singaporeans think the government is handling inflation “badly,” according to a new poll, highlighting challenges facing the country’s leaders as the nation undergoes a political transition.
About 55% of respondents in the mid-May survey conducted by pollster Blackbox Research Pte. said the government was handling everyday price rises “badly.” Almost 20% said it was tackled “very badly,” while 36% felt it was dealt with “quite badly.” At the same time, 37% said the government was performing “quite well” and 7% said “very well.”
More than nine in 10 Singaporeans said inflation has affected their lives, with 37% indicating a “significant” impact, according to the poll based on interviews with 758 people aged 20 and above. It has a margin of error of 3%.
That sentiment is an indication of the challenges finance minister and prime minister in-waiting Lawrence Wong faces in convincing voters that the ruling People’s Action Party is doing enough to tackle sharp price rises. Many governments and central banks are acting in tandem to shield their citizens from the cost-of-living crisis sweeping the world.
“A perfect storm has emerged post-pandemic that will test the Singaporean government over the next 12 months as it not only seeks to bring about a speedy recovery but also bed in new political leadership,” said David Black, the founder and chief executive officer of Blackbox.
Singapore’s cost pressures have been persistent this year, prompting the central bank to tighten monetary policy and revise expectations for price-growth that could crimp the broader post-Covid growth recovery. While officials are hopeful that nominal wage growth will outpace inflation this year, economists see prices remaining elevated in the city-state through 2023.
Global inflation, exacerbated by supply-side pressures caused by Russia’s invasion of Ukraine, has filtered through to consumers worldwide, even as early signs of inflation peaking appear.
In an indication of the risks facing the city-state’s economic recovery as it emerges from strict Covid restrictions, respondents said they have cut back on their spending due to inflation, with nearly nine in 10 spending less on clothing, restaurants, and entertainment at cinemas and theaters.
Wong has committed to help residents to cope with consumption tax increases set to kick in initially next year in his maiden budget delivered in February.
About 57% of low-income respondents -- earning below S$2,500 ($1,800) a month -- said the government was doing badly, while 59% of medium-low income households, earning S$,2500 to S$6,600, felt the same, the survey showed.
Other key points from the poll include:
• Singaporeans are feeling the most inflation pain in petrol prices (35%), followed by utility prices (34%), and at supermarkets (28%)
• 66% of Singaporeans say they feel negatively about rising public housing prices
• Only 44% believe that they will be economically better off this year than 2021
2024: Higher GST, more price hikes, and even rising costs for gas, electricity and water
SINGAPORE: For the first quarter of 2024, Singaporeans will not only face the increase in the Goods & Services Tax from 8 to 9 per cent but will also need to deal with higher electricity and gas prices, The Straits Times (ST) reported on Friday (Dec 29).
These utilities are affected by the jump in carbon taxes from S$5 to S$25 per tonne of emission. The price of water is also set to go up in April, and a second increase in water prices has been set for April 2025.
ST noted that SP Group will raise electricity tariffs by 5 per cent for the first quarter of next year, going from 31 cents to 32.58 cents per kilowatt-hour (kWh). CityEngergy has also said that town gas tariffs are increasing by around 4 per cent, from 24.21 cents to 25.23 cents per kWh.
However, the higher tariffs will not affect customers with fixed-price plans until their plans are renewed.
“The carbon tax is part of a suite of measures to support Singapore’s transition to a low-carbon economy, by steering consumers and producers away from carbon-intensive goods and services, holding businesses accountable for their emissions, and enhancing the business case for the development of low-carbon solutions,” ST quotes a spokesperson from the Energy Market Authority (EMA) as saying.
If the total cost of the carbon tax is to be shouldered by customers of utility retailers, their bills are likely to go up by S$4 per month for a four-room HDB flat, said the National Climate Change Secretariat earlier this month.
The EMA told ST that the vast majority of electricity in Singapore is from imported natural gas, which means that the country is affected by fluctuations in the global market.
“As we continue in our energy transition, natural gas, which is the cleanest form of fossil fuels, is expected to remain as the dominant fuel for Singapore in the medium term,” EMA added.
The price of water is also set to rise beginning from April of next year by 20 cents, followed by a 30-cent increase in April 2025.
There is, however, provision for rising costs such as the ones mentioned above, as households in Singapore that qualify will get $20 more each quarter in U-Save rebates that would help with higher costs, including water.
https://theindependent.sg/2024-higher-gst-more-price-hikes-and-even-rising-costs-for-gas-electricity-and-water